Inditex Group, the largest fashion retailer in the global market in terms of revenue, began massively closing stores amid the spread of Covid-19.
Spanish Inditex Group, the largest fashion retailer by revenue on the global market, began massive closures of stores around the world amid the spread of Covid-19. To date, 3785 stores in 39 countries most affected by the virus have been declared closed.
Managing the brands Zara, Bershka, Massimo Dutti, Stradivarius, Oysho and Pull&Bear, the Inditex Group continues to operate in these countries, including the U.S., China, Spain, and Germany, only through an online store. The company notes that online stores continue to operate as standard in all markets.
The losses caused by the suspension of the shops operated by Inditex Group are not yet reported. It is known that sales in Spain bring the company 15.7% of turnover, the rest of Europe - 46%, America - 15.8% and Asia - 22.5%. Also, it is known that in the period from February 1 to March 16, sales of Inditex brands decreased by almost a quarter.
Inditex notes that the current market situation, caused by temporary external factors, will not have a significant impact on the business model and growth potential of the company in the long term. In recent years, Zara online stores have opened, including in several African countries and the Caribbean, allowing the company to cover 106 markets.
Inditex Group, is one of the most significant players in fashion retail, joined the program of assistance in the fight against the spread of the Covid-19 virus. Today it became known that Zara brand owners handed over ten medical masks to healthcare professionals and sick patients. In the coming days, the retailer will send about 300 thousand additional personal protective equipment. Also, part of the company's production capacity will be temporarily transferred to the production of medical masks and robes. Currently, Spain is among the most affected countries in the world by Covid-19. According to the data as of March 23, 2020, the number of people ill in the country exceeds 33 thousand people.
Earlier it became known that Inditex Group sales increased by 8% in 2019 and reached 28.3 billion euros. The growth of comparable sales (not including discoveries) was 6.5%. Despite the reliable financial results, the company has not yet decided to pay out dividends amidst the uncertain market situation.
23 MARCH 2020, Spain
Source: Malls.com, photo credits: Zara